By ETimes
HARARE – EDGARS Stores Limited has reported a 3.28% increase in group sales revenue for the half year ended 6 July 2025, supported by stable macroeconomic conditions, improved agricultural performance and disciplined procurement.
“The economy benefited from a strong tobacco season, which boosted disposable incomes, leading to improved foot traffic and sales across the group’s stores,” Edgars Stores Chief Executive Officer, Sevious Mushosho said.
Group sales volumes rose 3.26% year-on-year to 877 411 units, with Express, the group’s newest retail chain, selling 33 649 units and contributing US$155 216 to total sales.
Edgars lauded the positive macroeconomic climate, citing a “commendably stable” official exchange rate that averaged +/-26.9 ZIG/USD during the period.
The group also noted that improved electricity supply “reduced reliance on generators, contributing to lower operating costs and supporting consistent trading hours.”
As economic stability holds, he said the company “remains focused on leveraging growth opportunities across both its core and non-core business segments.”
The flagship Edgars Chain posted a 3% revenue increase to US$7.9 million, although sales volumes remained flat at 371 368 units. Credit sales accounted for 64% of Edgars Chain’s sales, up from 63% in the prior year.
Jet Chain revenue was essentially flat, rising marginally by 0.1% to US$5.86 million from US$5.85 million in 2024. Sales volumes also held steady at 471 791 units. Like Edgars, Jet’s credit sales rose to 64%, while cash sales slightly declined.
The group opened a new Jet store in Shurugwi during the half-year and expanded its Express Chain with three new stores focused exclusively on cash sales to the low-income market.
“A further seven Express Stores are targeted for expansion before close of FY2025 financial year,” he said.
Gross profit margins improved by 1.1% year-on-year, attributed to a 50% reduction in markdowns and “smart procurement focused on bringing in high quality merchandise that sold at competitive prices.”
Carousel Manufacturing, Edgars’ production arm, ramped up output by 40% to 185 062 units from 132 566 last year.
The division received a significant productivity boost through a US$345 000 investment in a new cutting room solution.
“This strategy bodes well with the retail chains as it ensures delivery of quality products at competitive prices,” Mushosho said.
The group’s financial services division showed improved performance, with the debtors’ book shrinking from US$11.9 million in January to US$10.4 million by June.
Collections were robust at 26.8%, and the quality of the debtors’ book improved significantly, with 85.1% of accounts in current status compared to 77.9% at the start of the year.
Bad debt write-offs dropped to 1.75% of lagged sales, well below last year’s 2.5% and the industry benchmark of 5%.
“The group seeks to continue to write good credit to new and existing customers,” he said.
Club Plus Microfinance also saw substantial growth, doubling its loan book to US$1.6 million.
“Lending mainly focused on secure salary-based models targeting civil servants and the private sector. This helped the business in achieving healthy asset quality with more than 80% of the loan book in current.”
The firm credited digital platforms like mobile apps and WhatsApp for improved loan processing efficiency.
Looking ahead, Edgars plans to continue store rollouts, especially in underserved markets.
“The group will continue to expand its geographic footprint through the opening of new stores in strategic locations,” he said.
Further investments are planned in solar energy solutions to reduce power-related operating costs and improve customer experience.
On the merchandising front, the Group said it will maintain “smart merchandise procurement and optimal inventory planning” to support margins without compromising product quality.
Despite liquidity constraints in both local and foreign currencies, management remains confident.
“The successful agricultural season for the 2024-2025 provides a basis for optimism in the recovery of the economy in the outlook period.
“The group applauds efforts by the Government towards reducing the cost of doing business for retailers and associated industries through streamlining regulatory requirements, reducing costs of compliance and restoring orderly trading in urban centres, as these are key pillars in levelling the playfield,” Mushosho added.
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